Western airlines have finally given up their race to the bottom
Drinks being served on a BOAC flight between Heathrow and Khartoum in 1964 – Mirrorpix/Getty Images
If you are flying into Canada you may be able to get a free glass of wine even when travelling in economy.
British Airways may offer you a complimentary coffee on a morning hop from London to Europe, while American Airlines has started offering champagne and gourmet coffee for premium seats.
We are not yet going back to the 1960s world of glamorous “trolley-dollies” handing out non-stop food and drink on every flight. And yet, the major Western airlines are finally pulling out of their service nose-dive.
The race to the bottom in aviation is finally over – and that will be better for everyone.
It is probably not enough in itself to persuade anyone to spend Christmas in Vancouver or Toronto. But if you are flying Air Canada, you will now be offered a free alcoholic drink even in economy class.
Likewise, British Airways has upgraded its short-haul service and American Airlines has announced that it will offer a second trolley service on domestic flights of more than 1,500 miles, as well as fancy coffee and champagne for its premium economy customers. Virgin Atlantic has also recently announced that Wi-Fi will soon be free for everyone on its flights.
It might be a while before you can cheerfully sip your way through a couple of free glasses of merlot on an easyJet flight from Manchester to Malaga – or munch your way though a complimentary tray of sandwiches and cakes on the Wizz Air flight from Luton to Corfu.
Still, a corner has clearly been turned. The major Western airlines are starting to compete on service again, offering a few complimentary treats to their passengers as they hurtle through the sky.
Sure, that has always been true for business class travellers, and even more so for first-class. But they were charged eye-watering prices for those seats, with almost all the costs put on expenses. They are finally getting back to competing on service again for regular travellers.
That is a significant change in the way the aviation industry operates.
For the last two decades, airlines have had an obsession with price. Led by Ryanair, and some of the American low cost carriers, the only thing that mattered was driving down the cost of the ticket to the lowest possible level.
The free snacks were the first thing to go, followed by extra charges for choosing your seat, for any luggage heavier than a handkerchief and for boarding the plane ahead of everyone else.
The nadir was probably reached with reports of “standing only” tickets, and even charges for using the loo, although in fairness even Ryanair always said that wasn’t actually going to happen.
None of the low-cost airlines ever got around to a fee for breathing on board, but if they could get away with it they would have.
Drinks being served on a Ryanair flight from Trieste to Valencia in 2017 – kasto80/iStock Editorial
There are two reasons for the sudden change. To start with, there is a lot more competition from the state-subsidised airlines of the Gulf and Asia.
Well-travelled passengers have become used to far higher standards of service in other parts of the world and have started to demand that airlines in Europe and North America raise their game to match.
Next, and perhaps most importantly, it was always a very odd way of running a business. Other industries don’t operate on the principle that lowest possible price is the only thing that ever matters.
Sure, everyone wants a good value car, but we also want one that comes with air-conditioning, electric windows, and power steering. Toyota and Volkswagen recognise that, and aim to come up with a high-quality vehicle at a reasonable price.
Likewise, we want competitively priced groceries, but we don’t just want to eat the cheapest possible food, and Sainsbury’s and Tesco get that.
In most industries, the sweet spot is somewhere in the middle of the market, where you are selling a decent enough product at an affordable price. That is where the mass market is, and where the big profits can be made.
Aviation was the only exception to that rule.
In reality, “no frills” flying has been taken too far.
Costs have been pared to the bone, seats have become more and more cramped and less and less comfortable and endless extra charges have been added to the price of a ticket in a desperate attempt to squeeze a little more revenue out of each customer.
To compare flying on a low-cost airline during the peak season to a cattle truck would be unfair on the cow transport industry. Flying has been turned into an ordeal to be survived, instead of a pleasant opening to a holiday or a weekend mini-break.
At least a few of the airlines have started to work out that it was a mistake to take that quite so far.
True, there is a section of the market that cares only about price. But there is a far larger middle market that wants to have a pleasant journey.
They will be staying in a four or five star hotel when they arrive and eating out at some decent restaurants. And there is no reason why the flight should not be enjoyable as well.
Profits are booming for all the major airlines. IAG, the owner of BA and Iberia, reported record profits in 2024 and its shares have almost doubled over the last year.
American Airlines this week increased its profits forecast for the year, while Lufthansa reported a 27pc increase in profits in the latest quarter.
Flying is a profitable industry again, serving an affluent market.
The real battle over the next five years in aviation will be to offer better and better service while holding prices steady.
Sure, it might be a while before Ryanair is dishing out free drinks or easyJet is offering more legroom.
Yet, the major airlines have made a start on restoring service to acceptable levels – and in the end that will make flying far better for everyone.
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